Purchasing a Car with An Income Tax Refund

Are you hoping to use a tax refund to buy a new vehicle? Whether you are looking to purchase or lease a brand-new car, truck, or SUV, tax season is always a great time for buying a new car. Many dealers have great tax season specials. On average, American taxpayers can get around $3,000 in income tax returns every year. This can mean smart car buyers can utilize this cash as a substantial payment towards a new car which usually gives customers with low interest rates and even reduce monthly installments when financing.

how to use your tax return to buy a car

Using Your Income Tax Refund to Purchase a Car

If you wish to invest your refund on a new vehicle purchase or lease, we have some good news for you. The typical income tax return is typically enough to cover a big part of the down payment. If you’re not wanting to get a new vehicle, you could also use your return to pay off a part or all of your existing car loan.

If you have questions about using your refund to get a new car we have some suggestions and ideas from our automotive financing professionals.

  • Using Your Income Tax Return For a Down Payment:

  • Our automotive financing specialists suggest paying a significant deposit to help you get a car loan for your next car. Even if you are choosing to lease your new car, having a substantial down payment can help decrease your month-to-month payments. By using your tax return as a down payment, customers might receive better automobile funding options.

  • Income Tax Return For Used Car Buying:

  • While brand-new vehicles certainly have their own set of benefits, a used automobile is a cost-effective choice for many budget car shoppers. With a little bit of research, it is easy to discover a great deal on a pre-owned car. And savvy buyers can use their income tax refund as the down payment towards the purchase of that vehicle.

  • Use Your Tax Refund Towards an Auto Lease:

  • Starting a vehicle lease with a larger down payment might significantly minimize how much the month-to-month payment will be. It is very helpful also when customers wish to prolong the lease since most dealerships will typically permit the customer to extend their existing lease with a lower monthly payment on a month-to-month basis.

  • Pay Off Existing Loan:

  • Using your return to settle an existing automobile loan is always a superb idea. Customers can make use of that extra money to considerably decrease the balance on their existing automobile financing. And they can do this either by making a few extra payments or by paying off the balance in full. Paying off or significantly decreasing the remaining balance will lower the amount of interest that would have been paid over time.

Purchasing a Car with An Income Tax Refund | Volkswagen of Alamo Heights

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